It also provides deposit insurance to all federal credit union depositors (and most state credit union depositors), through something called the National Credit Union Share Insurance Fund. This means that credit unions can offer hemp businesses a full suite of products and services, in the context of the credit unions’ monitoring and diligence requirements. In the context of hemp banking, KYC will be especially critical as many operators will attempt to launder gray- and black-market marijuana dollars through the hemp banking ecosystem. Last week, the National Credit Union Administration (NCUA) issued new guidance (“Guidance”) for federally-chartered credit unions serving the hemp industry. The Credit Union National Organization (CUNA) fills that role for both state- and federal chartered credit unions.
Last week, the National Credit Union Administration (NCUA) issued new guidance (“Guidance”) for federally-chartered credit unions serving the hemp industry. All of us at Harris Bricken were excited to see the Guidance released: NCUA retained us last fall to advise the government on this project, and we have always represented credit union clients as to cannabis business services.
The Guidance is structured in an easily digestible Q&A format: it comes with clarifications, assurances and...
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